Matrixport: Bitcoin has lost the bull-bear divide for two consecutive weeks, with multiple technical indicators indicating that capital inflows are weakening

Matrixport released a market opinion saying, "Bitcoin's recent price action shows that the market is transitioning from a bull market phase to a consolidation phase. While the macro environment remains supportive, including continued Federal Reserve easing and the overall liquidity environment is relatively stable, a number of technical and structural indicators point to near-term weakness. Bitcoin has fallen below its 21-week moving average for two consecutive weeks, which has historically been seen as a reliable demarcation between bull and bear phases. At the same time, on-chain liquidity growth has slowed, and realized market capitalization indicators also show that capital inflows are weakening. The flash crash on October 11 highlighted these vulnerabilities, as billions of dollars in forced position squaring set off a chain reaction in the market. Bitcoin's unpositioned squaring contract size has declined, long-term holders are taking profits, and volatility remains low. The interplay of a stronger dollar, falling bond yields, and weak labor market data suggests that global growth momentum may be slowing, which is likely to cause risky assets, including bitcoin, to remain range-bound until confidence is re-established.